Scottish Poverty Information Unit

1. Unequal Risks of PovertyMorag Gillespie, Scottish Poverty Information UnitSchool of Law and Social Sciences,

2. Scottish Poverty Information Unit Established 1995 Applied policy research unit in School of Law and Social Sciences at GCU In pursuit of the ‘common weal’ Poverty is caused by the distribution of opportunities and resources rather than the lack of resources in society. Poverty can therefore be reduced or eradicated www.povertyinformation.org

3. Unequal Risks of Poverty • Cycle of unemployment and low pay • Structural inequalities • Recession as equalising factor? • Low pay, poverty and risk • Recovery – who pays, who spends?

4. What is poverty? • Definitions used • absolute poverty: below 60% median income in 1998/99, adjusted for price inflation • relative poverty: below 60% population income in the same year

5. Cycling in and out of work Ongoing issue: • Transitions to work and benefits barriers • E.g. 2003 evaluation - NDLP 29% return to IS in 12 months, 7% on programme for 3rd or subsequent time • Persistent and severe child poverty – long-term on benefits and cycling between benefits and work • Benefits reform and JCP programmes e.g. Employment Retention and Advancement

6. Employment rates in 2008 • aged 25-49 81.8 % • Men 78.7% • White 76.5% • Women 70.4% • Aged 18-24 63.4% • Minority ethnic groups 60.5% • Aged 50-69 56.1% • DDA disabled people 48.0%

7. Work and Gender Gender balance in Scottish labour force 50:50, but • 41% women and 11% men work part-time • Women and men in different industries and occupations • Two thirds of vulnerable and low-paid workers are women • Women, and particularly mothers, are more likely to be in insecure jobs as temps or home-workers. • Mothers need flexibility, but trade-offs with rights and pay

8. The presence of children affects women’s employment: With children No children Self-employed 5 4 Full-time employment 25 49 Part-time employment 31 16 Looking after home/family 26 6 Unemployed and seeking work 3 4 Higher/further education 5 7 Permanently sick or disabled 2 8 Other 4 7 Source: Scotland’s People: Results from the Scottish Household Survey 2007

10. Old Age

11. Recession impact (2009) • Private sector decline, public sector sustained; • Men affected more than women; • Non-white employment declined faster • youth employment fell most in Scotland 08-09 - 16-24 by 5.5%; 25-49 by 1.5%; 50+ by 0.8% • Future? Two stage recession? • public sector spending cuts – impact on women

14. Credit Crunch • Rising home ownership/ record debt levels: • borrowing £400bn (1993), £1,500 bn (2008) • Falling house prices, reducing consumer confidence and spending • Living costs? Fuel rising • Risks of debt greatest for low income groups • IPPR – quality of work matters http://www.ippr.org.uk/publicationsandreports/publication.asp?id=726

15. Who pays for the recession? • More households relying on female (often part-time) employment • Women’s job loss in public sector • Recovery of youth employment? • Attitudes to equal treatment/ discrimination? • Harsher benefits regimes and work tests? • Cumulative disadvantage reinforced over life cycle • Income inequality is a problem of poverty and wealth

16. Inequality matters • Taxation changes • Increase adult benefits • Address access affordability (e.g. childcare) • Resource allocation informed by equality analysis – address disadvantage • Tackle low pay – improve NMW • Tackle discrimination – work, education/ training • Improve quality/ sustainability of work and progression • Improve rights/ conditions for marginal or vulnerable workers